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Santos Chief Executive Kevin Gallagher said the company’s growth strategy was progressing well with the recent $2.5 billion acquisition of privately held Quadrant Energy helping to reduce the company’s breakeven oil price.
Mr Gallagher said this also gave the company a leading position in the significant Dorado oil find.
Santos share prices have risen as much as 1.9 % since the news, their highest since 2015.
‘Subject to regulatory approvals, the recently announced acquisition of Quadrant Energy will further reduce our breakeven oil price and deliver operatorship of a high quality portfolio of low-cost, long-life conventional Western Australian natural gas assets.’ Mr Gallagher said.
Since 2016 the company’s growth strategy has delivered a diverse portfolio of long-life natural gas assets, generating free cash flow. As part of their growth strategy they have succeeded as one of Australia’s lowest-cost onshore operations.
“Our strategy has been to establish a disciplined low-cost operating model that delivers strong cash flows through the oil price cycle,” Mr Gallagher said.
The announcement comes after Santos revealed earlier this month it had signed a new long term natural gas supply agreement with Brickworks Limited for its east coast operations through to the end of 2024.
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